KINDS OF OBLIGATIONKINDS OF OBLIGATION

As to SanctionAs to Sanction

Civil or perfect obligationCivil or perfect obligation. It is an . It is an obligation whose sanction is law.obligation whose sanction is law.

Natural Obligation or naturalis Natural Obligation or naturalis obligatioobligatio is one enforceable by law but is one enforceable by law but nevertheless binding on the obligor by nevertheless binding on the obligor by dictate of his conscience and the basic dictate of his conscience and the basic postulates of natural law, justice and postulates of natural law, justice and equity.equity.

Moral ObligationMoral Obligation is a duty imposed by is a duty imposed by ethical or religious belief.ethical or religious belief.

As to Subject MatterAs to Subject Matter

Real ObligationReal Obligation. The . The obligation to giveobligation to give

Personal ObligationPersonal Obligation. The . The obligation to do or not to do.obligation to do or not to do.

As to Number of Persons ObligedAs to Number of Persons Obliged

Unilateral ObligationUnilateral Obligation. Is one . Is one where only one party is bound. where only one party is bound. Only one party undertakes a Only one party undertakes a performance.performance.

Bilateral ObligationBilateral Obligation. Is one . Is one where both parties are bound, where both parties are bound, as in the contract of sale.as in the contract of sale.

As to Mode of PerformanceAs to Mode of Performance

Positive ObligationPositive Obligation. Is an . Is an obligation to give and to do, the obligation to give and to do, the essence is affirmative actionessence is affirmative action

Negative ObligationNegative Obligation. Is an . Is an obligation not to give or not to do, obligation not to give or not to do, the essence is inaction or non-action.the essence is inaction or non-action.

As to Sequence of PerformanceAs to Sequence of Performance

Primary ObligationPrimary Obligation. The principal . The principal object of the contract.object of the contract.

Secondary ObligationSecondary Obligation. One which . One which is contracted and is to be performed is contracted and is to be performed in case the primary obligation cannot in case the primary obligation cannot be performed.be performed.

As to ObjectAs to Object

Principal ObligationPrincipal Obligation. One which . One which arises from the principal object of arises from the principal object of the engagement of the contracting the engagement of the contracting parties.parties.

Accessory ObligationAccessory Obligation. One which . One which depends upon or peripheral or depends upon or peripheral or collateral to the principalcollateral to the principal

Kinds of Obligations Under the Kinds of Obligations Under the Civil CodeCivil Code

Pure and Conditional Obligation.Pure and Conditional Obligation. Obligation with a PeriodObligation with a Period Alternative ObligationAlternative Obligation Joint and Solidary ObligationJoint and Solidary Obligation Divisible and Indivisible Divisible and Indivisible

ObligationObligation Obligation with a Penal ClauseObligation with a Penal Clause

Pure Obligation Pure Obligation

Every obligation whose performance Every obligation whose performance does not depend upon a future or does not depend upon a future or uncertain event, or a past event uncertain event, or a past event unknown to the parties, is unknown to the parties, is demandable at once and is called a demandable at once and is called a pure obligation.pure obligation.

Conditional Obligation Conditional Obligation

Conditional obligation is one the Conditional obligation is one the fulfillment of which is dependent fulfillment of which is dependent upon the happening of an event.upon the happening of an event.

THE CONDITION MAY BE;THE CONDITION MAY BE;

Suspensive or Condition ParecedentSuspensive or Condition Parecedent – wherein – wherein the happening of the condition gives rise to the the happening of the condition gives rise to the obligation. The obligation is not to take effect until obligation. The obligation is not to take effect until the event happens, it is a suspensive conditionthe event happens, it is a suspensive condition

Resolutory Condition or Condition Resolutory Condition or Condition SubsequentSubsequent – wherein the happening of the – wherein the happening of the condition extinguishes the obligation, obligation condition extinguishes the obligation, obligation with resolutory condition take effect at once, but with resolutory condition take effect at once, but terminate upon the happening of the event.terminate upon the happening of the event.

Potestative Potestative – wherein the condition depends upon – wherein the condition depends upon the will of the debtor. (Invalid Condition, Art. 1182)the will of the debtor. (Invalid Condition, Art. 1182)

CasualCasual – wherein the condition depends upon – wherein the condition depends upon chance, or on the will of the third personchance, or on the will of the third person

Impossible ConditionsImpossible Conditions – those contrary to good – those contrary to good customs or public policy and those prohibited by customs or public policy and those prohibited by law, shall annul the obligation which depends upon law, shall annul the obligation which depends upon them. them.

Obligations with a Period or Obligations with a Period or TermTerm

Obligations for whose fulfillment a day Obligations for whose fulfillment a day certain has been fixed is called an certain has been fixed is called an obligation with a period or term and is obligation with a period or term and is demandable only when that day comes. demandable only when that day comes.

In In obligation with a periodobligation with a period, the , the general rule general rule is that it is presumed is that it is presumed that the period has been established that the period has been established for the benefit of both creditor and for the benefit of both creditor and debtor debtor

In the following instances, the court In the following instances, the court may fix the period may fix the period

If the obligation does not fix a If the obligation does not fix a period but from its nature and period but from its nature and circumstances it can be inferred circumstances it can be inferred that a period was intendedthat a period was intended

When it depends on the will of the When it depends on the will of the debtordebtor

When the debtor binds himself to When the debtor binds himself to pay when his means will permit him pay when his means will permit him to do so.to do so.

Alternative ObligationAlternative Obligation

An alternative obligation is one where An alternative obligation is one where out of two or more prestations which out of two or more prestations which may be given or performed, only one may be given or performed, only one is due and the complete performance is due and the complete performance of one of them extinguishes the of one of them extinguishes the obligation.obligation.

The The Obligee or creditor cannot be Obligee or creditor cannot be compelledcompelled to receive part of one to receive part of one and part of the other undertaking or and part of the other undertaking or prestation (Article 1199, Civil Code)prestation (Article 1199, Civil Code)

As a As a general rulegeneral rule, the right to choose the alternative , the right to choose the alternative belongs to the debtor. However, there are four limitations to belongs to the debtor. However, there are four limitations to

this right of choice of alternative by the debtor.this right of choice of alternative by the debtor.

When the right of choice of the alternative is When the right of choice of the alternative is expressly granted to the creditor by mutual expressly granted to the creditor by mutual agreement of the parties (Art. 1200, Civil Code)agreement of the parties (Art. 1200, Civil Code)

The debtor has no right to choose those prestations The debtor has no right to choose those prestations which are impossible, unlawful or which could not which are impossible, unlawful or which could not have been the object of the obligation (Art. 1200, Civil have been the object of the obligation (Art. 1200, Civil Code)Code)

The choice cannot produce any legal effect until it has The choice cannot produce any legal effect until it has been communicated to the other party (Art. 1200, been communicated to the other party (Art. 1200, Civil Code)Civil Code)

The debtor loses the right of choice among the The debtor loses the right of choice among the prestations whereby he is alternatively bound when prestations whereby he is alternatively bound when only one alternative is left that is practicableof only one alternative is left that is practicableof performanceperformance

Facultative ObligationFacultative Obligation

When only one prestation has been When only one prestation has been has been agreed upon, but the has been agreed upon, but the obligor may render another in obligor may render another in substitution, the obligation is substitution, the obligation is facultative (Article 1206, Civil Code)facultative (Article 1206, Civil Code)

Joint and Solidary Obligation Joint and Solidary Obligation

A joint obligation may be defined as an A joint obligation may be defined as an obligation where there is a concurrence obligation where there is a concurrence of several creditors or several debtors, of several creditors or several debtors, by virtue which each of the creditors by virtue which each of the creditors has a right to demand, while each of has a right to demand, while each of the debtors is bound to render the the debtors is bound to render the compliance with his proportionate part compliance with his proportionate part of the prestation which constitute the of the prestation which constitute the object of obligation.object of obligation.

The Right of the Creditors in The Right of the Creditors in Solidary ObligationSolidary Obligation

The right to demand entire payment of the debt or the The right to demand entire payment of the debt or the entire compliance with the prestation from any one of entire compliance with the prestation from any one of the debtorsthe debtors

If the debt has not been fully collected from one If the debt has not been fully collected from one debtor, the creditor has the right to demand payment debtor, the creditor has the right to demand payment from the remaining debtors (Art. 1216, Civil Code)from the remaining debtors (Art. 1216, Civil Code)

The right to file an action for compliance with the The right to file an action for compliance with the obligation against one , some all of the debtors obligation against one , some all of the debtors simultaneously.simultaneously.

The right to receive payment or compliance with the The right to receive payment or compliance with the entire prestation, from one, some or all of the debtorsentire prestation, from one, some or all of the debtors

The right to do whatever may be useful to the other The right to do whatever may be useful to the other creditors.creditors.

The right to assign his rights with the consent of the The right to assign his rights with the consent of the other creditors (Art 1213, Civil Code)other creditors (Art 1213, Civil Code)

The right to make a novation, compensation, The right to make a novation, compensation, confusion or remission of the debt.confusion or remission of the debt.

Obligations of a Solidary DebtorObligations of a Solidary Debtor

To pay the entire debt or fulfill the entire prestation when so To pay the entire debt or fulfill the entire prestation when so demanded by creditors. Payment made by one of the demanded by creditors. Payment made by one of the solidary debtors extinguishes the obligation. If two or more solidary debtors extinguishes the obligation. If two or more solidary debtors offer to pay, the creditor may choose which solidary debtors offer to pay, the creditor may choose which offer to accept. (Art. 1217, Civil Code)offer to accept. (Art. 1217, Civil Code)

To pay his corresponding share in the debt in case one of To pay his corresponding share in the debt in case one of the solidary debtors made full payment of the obligation, the solidary debtors made full payment of the obligation, with the interest for the payment already made. If payment with the interest for the payment already made. If payment is made before the debt is due, no interest for the is made before the debt is due, no interest for the intervening period may be demanded. (Art. 1217, Civil intervening period may be demanded. (Art. 1217, Civil Code)Code)

To pay for the share of the insolvent co-debtor in proportion To pay for the share of the insolvent co-debtor in proportion to the debt of each when one of the solidary debtors cannot, to the debt of each when one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor because of his insolvency, reimburse his share to the debtor paying the obligation (Art. 1217 3rd par. Civil Code)paying the obligation (Art. 1217 3rd par. Civil Code)

If the solidary debtor makes payment after the obligation If the solidary debtor makes payment after the obligation has prescribed or become illegal, he losses the right to has prescribed or become illegal, he losses the right to reimbursement from his co debtors (Art. 1218, Civil Code)reimbursement from his co debtors (Art. 1218, Civil Code)

Divisible and Indivisible Divisible and Indivisible ObligationObligation

An obligation to give definite things and An obligation to give definite things and those which are not susceptible of partial those which are not susceptible of partial performance is deemed an performance is deemed an indivisible indivisible obligationobligation (Art. 1225, Civil Code) (Art. 1225, Civil Code)

When the obligation gives rise for its object When the obligation gives rise for its object the execution of certain number of days the execution of certain number of days work, the accomplishment of work by work, the accomplishment of work by metrical units, or analogous things which by metrical units, or analogous things which by their nature are susceptible of partial their nature are susceptible of partial performance, such obligation is called performance, such obligation is called divisible obligation.divisible obligation.

Obligation with a Penal Clause Obligation with a Penal Clause

An obligation with a penalty is one An obligation with a penalty is one where if the obligation is not where if the obligation is not complied with, the penalty imposed complied with, the penalty imposed shall substitute for damages and the shall substitute for damages and the payment of interests, unless payment of interests, unless otherwise stipulated (Art. 1226, Civil otherwise stipulated (Art. 1226, Civil Code) Code)

A penalty imposed for the breach of A penalty imposed for the breach of contract shall be enforced if the contract shall be enforced if the agreement is violated, whatever the agreement is violated, whatever the obligee has suffered from damages obligee has suffered from damages or not, inasmuch as one of the or not, inasmuch as one of the primary purposes in fixing a penalty primary purposes in fixing a penalty is to avoid damage.is to avoid damage.

Proof of actual damages suffered by Proof of actual damages suffered by the creditor is not necessary in order the creditor is not necessary in order to demand penalty (Art. 1228, Civil to demand penalty (Art. 1228, Civil Code)Code)

As a general rule is that the penalty takes place of As a general rule is that the penalty takes place of indemnity for damages and for the payment of indemnity for damages and for the payment of

interest, except:interest, except:

when there is express agreement to when there is express agreement to the effect that damages or interest the effect that damages or interest may still be recovered, despite the may still be recovered, despite the presence of the penalty clause (Art presence of the penalty clause (Art 1226, Civil Code)1226, Civil Code)

when the debtor refuses to pay the when the debtor refuses to pay the penalty imposed in the obligation penalty imposed in the obligation (Art. 1226, Civil Code)(Art. 1226, Civil Code)